Social Action For Rural Development (SAFRD), Berhampur V. ITO, Phulbani

ITA 74/CTK/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6335 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-04-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 05-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 142(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK . . , . . , BEFORE SHRI P.K.BANSAL , AM & SHRI D.T.GARASIA , JM ./ ITA NO. 7 4 / CT K /20 1 3 ( / ASSESSMENT YEAR : 20 0 6 - 0 7 ) SOCIAL ACTION FOR RURAL DEVELOPMENT (SAFRD) AT - KUMBHAR KUPA, PO: MALLIKAPADI, DISTRICT KANDHAMAL VS. ITO, PHULBANI WARD, PHULBANI ./ ./ PAN/GIR NO. : A A HTS 4185 P ( / APPELLAN T ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI P.K.MISHRA /REVENUE BY : SHRI S.C.MOHANTY / DATE OF HEARING : 2 9 TH APRIL , 201 4 / DATE OF PRONOUNCEMENT : 01/05 /2014 / O R D E R PER BENCH : TH IS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 29 - 8 - 2011 . 2 . THE ONLY ISSUE INVOLVED IN THIS APPEAL IS THAT THE ASSESSEE WAS NOT ALLOWED DEDUCTION IN RESPECT OF THE EXPENSES AS P ER THE PROFIT AND LOSS ACCOUNT WHICH HAS BEEN INCURRED BY HIM FOR THE PURPOSE OF EARNING THE INCOME OF THE TRUST. 3 . BRIEF FACTS OF THE CASE RELATING TO THIS GROUND ARE THAT THE ASSESSEE HAS APPLIED FOR REGISTRATION U/S. 12AA, THE SAME WAS REJECTED BY THE CIT, AGAI NST WHICH THE ASSESSEE HAS NOT PREFERRED AN APPEAL BEFORE THE TRIBUNAL. THE ASSESSEE HAS NOT FILED RETURN OF INCOME. THE 2 ITA NO. 7 4 /201 3 AO THEREFORE, ISSUED NOTICE U/S. 142(1) CALLING FOR THE RETURN BUT THE ASSESSEE DID NOT SUBMIT THE SAME. THE AO ON THE BASIS O F THE APPLICATION FORM NO. 10A & 10G NOTED THAT THE TOTAL RECEIPT OF THE SOCIETY IS AMOUNTING TO RS. 7,39,019/ - AND AFTER DEDUCTING EXPENDITURE AMOUNTING TO RS. 1.82,959/ - OUT OF TOTAL AMOUNT, DETERMINED THE TAXABLE INCOME AT RS. 5,56,060/ - . THE ASSESSEE WEN T IN APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE WITHOUT CONDONING THE DELAY HOLDING THAT THE DELAY IS UNEXPLAINED. 4 . WE HEARD RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIE S BELOW. WE NOTED THAT THE ASSESSEE HAS SUBMITTED THE REASONS FOR FILING THE APPEAL LATE BEFORE THE CIT(A) . IT WAS STATED THAT THE DIRECTOR OF THE ASSESSEE SOCIETY WAS SUFFERING FROM THE MALARIA FEVER AND THE RIOTS WAS TAKEN PLACE IN KHANDHAMAL DUE TO WHIC H THE ASSESSEE COULD NOT FILE THE APPEAL WITHIN THE TIME. IN OUR OPINION, THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE AND, THEREFORE, WE CONDONE THE DELAY AND DIRECT THE CIT(A) TO ADMIT THE APPEAL OF THE ASSESSEE AND DECIDE ON MERIT. THE ASSESSEE IS ALS O DIRECTED TO PRODUCE BEFORE THE CIT(A) ALL THE NECESSARY EVIDENCE AND PROVE THAT THE EXPENDITURE WHICH HAS BEEN DEBITED BY HIM IN THE INCOME AND EXPENDITURE HAS BEEN INCURRED BY HIM FOR THE PURPOSE OF EARNING THE RECEIPT FROM DIFFERENT HEADS AND FOR GETTI NG THE OTHER RECEIPTS UNDER THE DIFFERENT PROGRAMME CARRIED OUT BY THE SOCIETY. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE ISSUE TO THE FILE OF THE CIT(A). 3 ITA NO. 7 4 /201 3 5 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PU RPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 01/05 / 201 4 . 01/05 /2014 SD/ - S D/ - ( . . ) ( D.T.GARASIA ) ( . . ) ( P.K.BANSAL ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 01/05 /2014 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGI STRAR) , / ITAT, CUTTACK 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) , BERHAMPUR 4. / CIT , BHUBANESWAR 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//